23 08, 2016

PPA in need of overhaul

2016-08-23T22:14:33-07:00August 23rd, 2016|Categories: Defined Benefit Plans|Tags: , |

The law of unintended consequences is once again in evidence 10 years after the passage of the Pension Protection Act of 2006. The PPA was passed to bolster the stability of defined benefit plans and the Pension Benefit Guaranty Corp. Instead, its greatest impact was on defined contribution plans, and it might have hastened the demise of the defined benefit plans it was designed to strengthen. The outcome is a reminder that legislators must not consider just the results [...]

28 03, 2014

Why Corporate Pension Relief Makes Sense…Permanently

2014-03-28T21:37:17-07:00March 28th, 2014|Categories: Defined Benefit Plans|Tags: , , |

In the debate over whether to extend unemployment benefits, Congress is considering using pension funding relief to help pay the cost. Extension of unemployment benefits may or may not be a good idea, but extension of pension relief certainly is. Defined benefit pensions have faced tremendous pressure in recent years from the one-two punch of the Pension Protection Act (PPA) of 2006 and, more recently, historically low interest rates that were barely imaginable when that legislation was passed. The relief [...]

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